The credit of feature pic belong: CIMMYT / Alfonso Cortés, CIMMYT leads the world in applied research in maize, wheat, and associated cropping systems, and heads a network of partnerships to serve the poor in developing countries.For more about CIMMYT‘s work, please visit www.cimmyt.org.

Editor’s Note: The biological market in Latin America is one of the fastest developing sectors in the agricultural input industry. Brazil is the largest market for biologicals in Latin America, with more than 500 biological products having been registered.

Farmers in Latin America are actively seeking biological solutions for pest and disease management, nutrient supplementation, and soil health improvement. Additionally, governments in Latin America are implementing incentive programs and regulatory changes to encourage the adoption of biological inputs in agriculture. These initiatives provide valuable support and incentives for farmers, leading to market growth and greater acceptance of agricultural biologicals.

Considerable development potential is attracting the attention of all biological product manufacturers and distributors worldwide, who are accelerating the business layout of new technologies, new products and new applications related to biologicals.

Accordingly, AgroPages recently invited some key players in this field to share their views over the market landscape of the biological market in Latin America, the layout, application, regulation of biologicals, opportunities and challenges for biologicals, as well as the plans to launch new biologicals in Latin America and more.

The participating experts are: Bénédicte Flambard, Vice President, Global Plant Health, FMC Corporation; Jorge Solis, Commercial Manager, AMVAC LatAm; Daniel Forlivio, South LATAM VP, Acadian Plant Health; Florencio Romaguera, Head of Latin America, Rovensa Next and Luis Carlos Cavalcante, Head of Marketing and Commercial Brazil, Rovensa Next; Hanan Dor, Groundwork BioAg’s Chief Commercial Officer; Mario Tenerelli, DPH Biologicals Executive Consultant.

Could you describe the market landscape of the biological market in Latin America? What are the drivers, challenges and trends of the development of biologicals in this region?

Bénédicte Flambard:The biological market in Latin America is growing at one of the fastest rates globally, with an estimated market value of $1.4 billion in 2021 and a compound annual growth rate (CAGR) of 11% for the next ten years. According to the Agricultural Biologicals Market Report 2022, it is second only to the Asia Pacific region.

Brazil is the largest market for biologicals in Latin America, with an estimated $850 million market. Brazil has dominated the world for the past decade since the first bionematicide product introduction, a segment that today accounts for more than 30% of the total Brazilian biological market. ″On-farm″ production is a trend in Latin America, especially Brazil, where it represents more than 15% of the entire country’s biological market.

The Latin America market is characterized by strong adoption of biologicals, particularly biostimulants, reaching 30% in row crops and up to 60% in fruits and vegetables (F&V). Row crops such as sugarcane, corn, soybean and cotton are the predominant markets in Brazil and Argentina. In contrast, the use of biologicals in Mexico, Chile and Peru is primarily on fruits and vegetable crops.

Regulation is a driver of the development of biologicals in this region. Regulations against the use of synthetic pesticides and residue levels in food have increased the use of biologicals by Latin American farmers. Another key market driver is the favorable regulatory environment for biologicals in many Latin American countries. Therefore, the past two decades have been marked by a dynamic competitive landscape, with foreign companies rapidly entering the market. The acquisition of local biological companies and funding of new startups has further shaped the market positively.

The dynamic ecosystem has facilitated the introduction of new, certified technologies and helped to counter the negative reputation of biologicals as being of sub-standard quality. As a result, the confidence in their performance is steadily increasing. This manifests in the increased adoption of biologicals as partner products to synthetics by growers looking to alternate between conventional and biological products.

Jorge Solis: Latin American farmers are moving fast towards a new concept of modern agriculture based on the integration of conventional inputs, biorationals, high-tech decision-making tools and precision application. Farmers clearly started to demand high performance tools with lower chemical load, increasing water use efficiency and carbon sequestration, restoring soil life, and finding better options to compete in a consumer market that demands sustainable actions from the field. Technology and nature are converging into better production practices and not against each other. The bonding material for this integration is knowledge. We at AMVAC are very excited to be in the forefront of this farming revolution. The new production practices will allow for continual growth of our biorational portfolio, which extends far beyond just the organic farming areas. It will cover conventional farmers who are also integrating these tools.

Daniel Forlivio: Acadian Plant Health™ is an Ascophyllum nodosum seaweed biostimulant company, so we will only comment on this segment of the biological market. Seaweed extracts account for more than 33% of the total biostimulant market worldwide and are expected to grow at 12.2% CAGR in South America in the forecast period 2023 to 2030. Brazil is the highest-growing country in LATAM.

Volatile weather conditions and their impact on crop yield drive the market for crop stress-managing biostimulants in this region. Key drivers continue to be aligned to stress management, yield and quality increase, water management, soil health, and at the end of the day performance vs cost/benefit. One of the main challenges in the market is low-quality technology being marketed by some companies which depreciates this technology.

In 2023, Brazil is expected to dominate the South American market for row crops, while in North LATAM market (Mexico) is leading with solutions for specialty crops such as agave, avocado, and berries. The changing crop protection market with manufacturers’ organic solutions portfolio is rising and creating the demand for the seaweed extract biostimulant market.

Florencio Romaguera: The LATAM market is as a major player in the agri-food sector. Its resilience and ability to respond to the demands of increasingly demanding markets position it as a contender to be reckoned with.

One trend that is driving LATAM’s development is a significant increase in the desire for products of plant or microbiological origin to address various agricultural challenges. While this largely depends on the type of crop and market, we are generally seeing a transition to these kinds of solutions that aim to reduce or eliminate chemical burden in the final product, while maintaining crop performance and the organoleptic qualities of fruits and vegetables.

Luis Carlos Cavalcante: Biological products are currently adopted by most of the growers in Latin America, whether for cash crops or row crops. The diversity of pests and an increase in the number of suppliers to farmers are the main reasons for growth surpassing that of chemical or conventional control methods.

Biocontrol is also an interesting challenge and opportunity in the region. Some countries already have extensive experience and familiarity with these types of products, while others are undergoing a slower process of transition.

Another challenge for the growth of biologicals is the quality of spray technologies capabilities among growers. Additionally, the failure to meet basic requirements for storage at the farm site and internal transportation, both of which are conducted in high temperatures during operations and tank mixes with no compatibility tests, create inappropriate conditions for biologicals to perform effectively. Without these challenging aspects, the adoption rate of biologicals by growers would have been even higher.

Hanan Dor: In Latin America, growers are ahead of the global curve in integrating biologicals as an important part of a more complete integrated crop treatment for pests, disease and nutrition. Many of the largest growers have adopted more sustainable farming practices using biologicals, making Brazil, in particular, an attractive market for biological companies. While LATAM growers now have many choices, they are looking for proven products with specific, high-value benefits, including helping to reduce their dependance on chemical fertilizers.

Since 2018, Groundwork BioAg and its partner NovaTero BioAg, led by Bernad Arnaud, chairman, and Ricardo Stolf, chief executive officer, have been helping growers cost-effectively and sustainably improve yield by adding Rootella® BR mycorrhizal inoculant as the foundation of their fertility program.

Mario Tenerelli: Over the last decade, Latin America farmers have looked to biologicals as an important tool combined with seed and crop chemicals to help them achieve higher yields while satisfying the global supply chain demands for more sustainable and environmentally friendly farming practices.

While the Latin American biological sector is still maturing, LATAM growers recognize the benefits of using proven biologicals and integrated practices to improve soil and plant health. At DPH Biologicals, we see tremendous growth potential for products that perform consistently on large scale operations and are easily integrated into modern growing practices.

Could you talk about the regulatory landscape of biologicals in Latin America? What impact do these regulations have on your company’s business?

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